MJBizMag May-June 2021 - 66

Against
the Odds
By Subscription Only
There's never a good time for a pandemic to strike,
but the timing couldn't have been better for Nugg
Club to launch its cannabis subscription box.
Unlike the Planet 13 superstore, Medizin caters mainly to Las Vegas residents.
Courtesy Photo
(the superstore remained open as well), Planet 13 advertised the
Medizin store in local newspapers and magazines. The company
also advertised on multiple, sequential billboards.
Not only did Planet 13 open a new cannabis retail store in its
hometown, but it also started construction on a 55,000-square-foot
superstore in Santa Ana, California. Called the Orange County
Cannabis SuperStore Entertainment Complex, the shop is expected
to open in mid-2021.
Construction on the California superstore started in early
February, nearly a year after Gov. Gavin Newsom issued the state's
first stay-at-home order related to the coronavirus pandemic.
The Orange County retailer will have 16,500 square feet for the
dispensary and additional space reserved for ancillary stores and
experiences like the ones at Planet 13's Las Vegas flagship location.
Planet 13 delivers more than just cannabis products. With
attractions that include an aerial orb show, LED interactive
floor and interactive laser art, visitors to the company's
112,000-square-foot Las Vegas shop leave with an experience
they're likely to share with friends on social media, said Larry
Scheffler, Planet 13's co-CEO.
The Orange County store will have a different theme but will
still be an experience that visitors want to share, Scheffler said. The
tentacles of a 16-foot-tall octopus sculpture in the store's lobby
reach into 500 brightly colored umbrellas that will hang from the
ceiling. An interactive floor will suggest waves lapping up on a
beach, where visitors' footprints are left behind in the sand.
" Everybody wants to be entertained, and it's our job to entertain
people, " Scheffler said. " We encourage videos and photos. What's
going to help us is the people who advertise for us-take a picture
and send it to their friends or post it on social media. The best
advertising in the world is word of mouth. "
In talking with other California dispensary owners, Scheffler said
he's learned that as much of their business these days is coming
from delivery as it is from in-store sales.
66 Marijuana Business Magazine | May-June 2021
The Santa Monica, California-based company, an
offshoot of the telemedicine platform Nugg MD,
launched in April 2020. Nugg Club delivers boxes of
carefully curated cannabis products valued at $225 to
consumers monthly for $99.
" We don't require a formal
application process, but
we have a strict vetting
and curation process for
all brands, regardless of
whether they initially
reached out to us or we
reached out to them, " said
Alex Milligan, co-founder
and chief marketing officer
for Nugg Club.
The boxes originally
were designed to help
consumers discover new products while giving partner
brands more visibility. But with many consumers
spending more time than ever at home and avoiding
retail settings early in the pandemic, the subscription
model served a dual purpose.
" We thought there was some opportunity to bring
delight back into the business, " Milligan said. " We
knew that the consumer preference would be for
more affordable cannabis and include the knowledge
and education components of the experience. "
The subscription model is beneficial to marijuana
brands because many in-store product promotions
have been put on hold, making it more difficult for
them to attract customers' attention. The Nugg
Club boxes give brands the opportunity to introduce
themselves to customers who otherwise might have
overlooked them.
" We still see brands struggling right now, " Milligan said.
" Their biggest problem is getting distribution right. "
Nugg Club's staff personalizes the boxes based on the
preferences its customers select when they sign up.
They can indicate their preference for indica or sativa
as well as whether they prefer smokable or edibles
products. Among the brands in the box that went out
in March were LucidMood vapes, Heavenly Sweet
gummies, OG Blunt pre-rolls and Fire Cut flower.
" We go and scout brands from all over California and
rigorously test their products over several weeks, "
Milligan said. Nugg Club ranks and scores potential
products for the box on traits such as terpene profile
and how firm the buds are for packaged flower.
" We have a list of criteria we're looking for, " Milligan
said. " If a brand meets enough of those criteria and
we've tested their product, from there it's a matter of
whether it's right for the box model. "
- Margaret Jackson
MJBizMag May-June 2021

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